Equilibrium Trade in Automobile Markets

We dedicate this paper to James A. Berkovec whose contributions to the development of micro-founded equilibrium models of the auto market was far ahead of his time and so inspirational to our own work on this subject. His untimely death at age 52 in 2009 remains a huge loss to the economics profession. The authors would like to acknowledge funding from the IRUC research project, financed by the Danish Council for Independent Research. Rust acknowledges financial support from the Gallagher Family Chair in Economics at Georgetown University. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.